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A debt consolidation loan may be the best option for you, if you fall into any of the following categories:

1. You are struggling with several monthly payments and you want to simplify your finances with one monthly repayment.

2. You are struggling to meet your minimum monthly repayments on your credit cards, store cards and personal loans and would like to reduce the amount of your monthly outgoings.

3. You are making the monthly repayments on your cards and then using the card again because you don't have any money to pay cash for your everyday purchases.

4. You want to reduce the amount of interest you are paying on your unsecured debt such as overdrafts, credit cards, store cards, payday loans and personal loans.

Advantages of a Secured Debt Consolidation.

1. By providing collateral for Secured Debt Consolidation you will qualify for more attractive interest rates and loan terms.

2. You will be able to spread your repayments over a longer period of time which will enable you to keep your monthly payment as affordable as possible.

Disadvantages of a Secured Debt Consolidation.

1. A longer loan term will result in a higher total loan cost, the interest will be lower but you are paying off the debt over a much longer term so your interest costs will be greater.

2. The loan rate offered to you is more likely to be variable which may make controlling your budget more difficult. Your repayments will increase in the event of a Reserve Bank increase in the base rate.

3. If you fail to keep up with your loan repayments you will be risking your home as the lender has the legal right to repossess your home in order to settle your loan. As always you must evaluate the risk and real cost before consolidating consumer debt into your home loan.

With consumer debt levels at an all time high many people are struggling to keep their heads above water, leading to missed repayments and bad credit ratings. Some individuals even facing bankruptcy.